5% Closing Cost - Good? Bad? Ugly?
I'm hoping someone with more insight than myself can shed some light on a quote from a mortgage broker.
I am trying to get a lot-construction-perm single close loan.
The lot purchase will run $199,000. The construction costs I'm estimating at $280,000 (based on interviews with GCs) for a total of $480,000 + probably $20,000 as a contingency.
Now I've come across a mortgage broker who's quoting $24,000 (or 5% of lot+construction) closing costs (and as of yet, I do not have a breakdown of what is in that cost) so this may be impossible to answer.
He says $50,000 down and he can roll the closing costs into the loan and the rate, during construction AND for the final mortgage will be 6.25%.
So how does this deal sound? Are there any good mortgage brokers or construction lenders that folks have had good experiences with?
Any information would be much appreciated.